Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1887-08-28
GREAT WHEAT CRASH
COLLAPSE or THE SAN FRANCISCO
RING AND IT'S ErF1crA
Its Full Significance Not Yet Kaown-
1normous Losses to Brokers and Others.
Bitter Feeling Among Dealers.
fBy ,elerAarh % the pIspstch.l

&Oufl ttot RttH tbNfi tttSftthtCHt w Nv
cept all wheat rendered them, aud the
call board was at once adjourned with
out any sales being Effected. This is ac-
ccpted as q complete collapse OF the
wheat ring, bat what effect it will have
on the street is not yet known.
The full Significance OF the crash
will probably not be known for several
days. While Dresbach & Roscnteld
were supposed to be acting for John
". Mackay, j. G. Flood, and other
largo stockholders OF tho Nevada Bank,
The deals were all made in their name
ard ell contracts were made personally
with them without any additional qua
rartees. When the corner broke Au
gust "a Dresbach * Rosenfeld agreed
to pay the difference between 2.O7 and
10 per GENITAL, or 81 cents per GENITAL,
in four monthly payments, the first
payment TO fall due September LIST.
The prices of wheat fell steadily TO
1870, but the bull clique was expected 10
be able to carry the big load, and the
announcement was made two days ago
that the first instalment OF money
would be pnid as agreed. The announce
mont to-day, therefore, that the two big
brokers' would repudiate their paper was
the last straw, and was accepted as a
final surrender, and illustrated that all
the enormous losses, with the excep-
ton of possibly S2,000,000 advanced
by the bull clique early in the deal, is
TO fall upon the brokers and others who
had dealings with these two representa-
tiyes of the other mon whose identity
has not been disclosed. There is con-
siderable excitement on the street. but
no failures have as yet been reported,
and while many of the big houses have
been hit very hard the hope is ex-
pressed that they viii be able to pull
through. The feeling is very bitter
among The dealers, and the entire deal
is spoken of as one of the worst in the
history of the trade.
The street is practically at sea, and
few hazard an opinion as to the out
come. 1t is settled that firms having
unsettled contracts with Dresbach Il
Rosenfeld will have to bear the big
losses growing out OF the deal. This
afternoon John Rosenfeld filed q deed
transferring all his property, valued at
S200, coo, to the Nevada Bank. This is
supposed to prove the connection Of
that institution with it. Neither
Mackay nor Flood could be seen at
their office to-day. and it was not
expected that they would make
statement in any event. Vice.
Ircsident BIencker, of the Ne
yada Bank, declined TO make state
mclt of any kind. John Rosenfeld,
In explanation of the decision reached
ly himself and Dresbach to not carry
out ;hoir contracts, said: ave have
paid out all the money We had and can
get 10 more accommodation at the
banls. and have had to stop. That is
all there is to it. Some one will make
a great deal Of money out of this for
those who have the corn.
mean people in England will
be able to pick up the wheat we are
holding at song. IL we could have
gained more time We might have pull
cd through, but now all is over with
u.s."
Continuing, Mr.. Rosenfeld said
" Money has been tigLr all along, and
the real estate boom has made it tighter
and shut us of from ali accOmmoda-
tons"
The call-board has adjourned until
next Monday, but even though notice
has been given by Dresbach Il Rosen-
field to sell all the wheat in their name,
il is believed that the board may be
again adjourned for an indefinite pc
Rod, though how this will mend mat
tiers docs not appear. As near as can
be ascertained, after returning the ORR
ginal deposit money of buyers and sell
lers at the rate of four dollars ton on
the 100000 tons named in the agree
ment of August Sd, and which reduced
margins from 2.l5 per GENITAL to DO.
Dreshach q ROsenfeld further mar
eincd down about 10000 tons to
40. They paid out large sums for
this purpose during the last few days,
and to-day was the day when the re-
maindcr fell due. II would require
about 800, GOO TO meet this part OF the
agreement. The inability OF Dresbach
a Rosenfeld to pay out any more
money therefore leaves about $4,000
tons Of wheat in the hands of holders.
standing them in 200 per GENITAL,
which cannot be sold except at panic
prices. 1t is feared this will cause
additional trouble in the trade.
for it involves heavy losses upon
holders who are confident in the
ability of Dresbach a. Rosenfeld
to meet their obligations. Ten thou
sand tons of wheat placed by Dres6ach
& Rosenfeld In the hands OF the direc-
tors of the Produce Exchange as Sc
curity were in fuliilment OF an agree
ment of August 81, ana about t,OoO
tons now remain. 1t having been re-
leased as the margin money was re-
TUNED. These 5000 tons which could
not be sold to-day at over S2.O6 ton,
or $50. 600, are all that the holders OF
{. Geo tons. costing % per GENITAL, or
81 23O. 600, have to secure them against
loss.
William Dresbach has made an as
siopment to G. Il. stone of all his pro-
peI,y for the benefit of his creditors.
The Post this afternoon says: 1.-The
feeling is generally prevalent that
next week will see lively times. and
failures are confidently predicted. That
Drcsbach & Rosenield ever really in
tended TO fulfil their agreements freely
scented by members of the board
ontside OF the influence of tho
ring. their intention being simply to
play for time. The declaration made
by Mackay the other day had the ell
feet. however, of establishing conf.
dence in the future carrying out OF
contracts, as it tended to confirm the
general opinion that the Nevada Bank
has more intimate connection with the
deal than it's managers cared TO admit.
n Mackay really meant what he
said about carrying all the wheat that
was offered, he has apparently
changed bis mind in regard to support
ing tie individual operations OF Drcs.
bael & Resented. The connection OF
these gentlemen, while 1t is still en-
yeloped in certain amount OF mystery,
will probably now have sufficient light
thrown upon IL TO determine definitely
who their hackers really were. Thatthey
were simply straw men was
generally admitted, Il being out OF rea-
son 10 suppose that people OF their ex-
- f,..,ta4 means could possibly